Ron Pauls first day as the co-chair of monetary policy, Bloomberg vid

[Libertytree]

“Obviously, that is the implication,” said Mr. Paul, author of “End the Fed.” “I do not talk about turning the keys and locking the doors. I talk about a transition and why don’t we legalize the Constitution and allow legal tender to compete with paper money.”


http://www.youtube.com/watch?v=-zbrRYOXl1U&feature=player_embedded

[madfranks]

Very good! Although I doubt our bought & sold congress will ever repeal any of the Fed's power, this will be fun to watch as Ron Paul wakes more people up to the truth of what the Fed really is. Just in that video alone were some key, key points that ignorant Americans are going to hear more and more in the coming years.

[VX1]

RP says he's good friends with Barney Fag? That's hard to hear... talk about a one-sided relationship. I guess he's a better man than I, cause there's no way I'd be able to go on national TV and claim to be friends with someone who is the antithesis of all my principals and actively looking to stab me in the back.

[Horn]

RP says he's good friends with Barney Fag? That's hard to hear... talk about a one-sided relationship. I guess he's a better man than I, cause there's no way I'd be able to go on national TV and claim to be friends with someone who is the antithesis of all my principals and actively looking to stab me in the back.


Hey, I post here & I still consider some of the folks here my friends all the time. ;D

[Horn]

Thing I worry about, is it'll make a Silver Eagle actually worth 1 dollar.

[SilverMagnet]

Thing I worry about, is it'll make a Silver Eagle actually worth 1 dollar.


If that were to become true, given the amount of above ground Silver in the world vs the population coupled with industrial demand, that Silver dollar would have immense purchasing power and thereby make the FRN appear as worthless as it actually is.

[cthulu]

Thing I worry about, is it'll make a Silver Eagle actually worth 1 dollar.


If that were to become true, given the amount of above ground Silver in the world vs the population coupled with industrial demand, that Silver dollar would have immense purchasing power and thereby make the FRN appear as worthless as it actually is.



Unless they cause massive deflation.

[FunnyMoney]

Unless they cause massive deflation.


How are they going to do that?

Are all the car makers goint to stop paying their employees to build cars, and obtain all the metal and power to run their car plants for half the cost so they can then sell the car for half price?

There's no free lunch. When things run out, they run out. Everything has a limited supply. That is, everything but the zeros added to the denominations on paper money. To have deflation you would need everyone, including and especially the govts of the world, to stop spending paper money and hoard and cherish it, above anything else. Hard to run a govt without spending money.

[RJB]

Well, these may be interesting times. God be with him.

[Joe King]

Unless they cause massive deflation.


How are they going to do that?

Are all the car makers goint to stop paying their employees to build cars, and obtain all the metal and power to run their car plants for half the cost so they can then sell the car for half price?

There's no free lunch. When things run out, they run out. Everything has a limited supply. That is, everything but the zeros added to the denominations on paper money. To have deflation you would need everyone, including and especially the govts of the world, to stop spending paper money and hoard and cherish it, above anything else. Hard to run a govt without spending money.

No one has to hoard paper "money" to do that.
What would cause a "massive deflation" would be for the vast majority of people/business and especially government to stop borrowing $ in order to spend it into circulation, while at the same time continuing to make payments on previously existing loans.


As for cherishing it above anything else, I'd say they already do that. At least from my perspective anyways.

[FunnyMoney]

Unless they cause massive deflation.


How are they going to do that?

Are all the car makers goint to stop paying their employees to build cars, and obtain all the metal and power to run their car plants for half the cost so they can then sell the car for half price?

There's no free lunch. When things run out, they run out. Everything has a limited supply. That is, everything but the zeros added to the denominations on paper money. To have deflation you would need everyone, including and especially the govts of the world, to stop spending paper money and hoard and cherish it, above anything else. Hard to run a govt without spending money.

No one has to hoard paper "money" to do that.
What would cause a "massive deflation" would be for the vast majority of people/business and especially government to stop borrowing $ in order to spend it into circulation, while at the same time continuing to make payments on previously existing loans.


As for cherishing it above anything else, I'd say they already do that. At least from my perspective anyways.


Not so.

They must pay their employees and their mercs. This is a third of the workforce. It doesn't matter if they pay in electronic transfer to bank accounts or in cash. Those getting the payments will spend this money, they will not save it nor cherish it anymore than they do today. They will buy food, energy or whatever it is that they buy today.

That trend does not change and can not change without ending the "tax and spend" society. Deflation is not in the cards. The govt will not reduce its control and its power, those behind the scenes and pulling the strings won't either. They print and spend it, this is how they expand their wealth and their control. A reversal of those power mechanisms will not take place.

[Joe King]

FunnyMoney, if lending stops and existing loans are still being paid back, the "money" supply can only shrink as it will not be being replenished via new loans.
i.e. monetary deflation by definition

People would still spend it for goods and services same as before, but it would become increasingly hard to get as there would be less and less $ to go around as time goes on.


Which is also why the .gov steps in during times like these and borrows like never before.
It's an attempt to maintain liquidity in the economy via public means.
i.e. if we won't individually assume debt sufficient to do so, they'll do it in all our names for us, because monetary deflation scares the ever lovin' sh!t out of 'em.


BTW, "money" today is made to be spent. We've been living in an inflationary cycle for decades and that's what FRNs are designed for. Inflation.
Which drives demand.

That means to save and cherish ::) them is to be foolish.
People only "love" them because of what they can get for them. Same as gold when used as money.

The difference with FRNs is that we've all been conditioned to know that if we wait and hold them that we get less for them. So hurry and spend them now.

The reason we have such a system is because it encourages economic activity to happen that wouldn't otherwise happen until later. Possibly much later, or even not at all.

[TheNocturnalEgyptian]

More Thorough Answer to Come:

http://i.imgur.com/i7tPy.jpg

Co-chair of monetary policy is the perfect job for Ron Paul

[Libertytree]

Front Page of the Week In Review Section, Sunday NYT 12/12/2010

http://www.nytimes.com/2010/12/12/we...ef=todayspaper

The Fed? Ron Paul’s Not a Fan.By SEWELL CHANPublished: December 11, 2010

Ben S. Bernanke, the chairman of the Federal Reserve, has been attacked for failing to foresee the financial crisis, for bailing out Wall Street, and, most recently, for injecting an additional $600 billion into the banking system to give the slow recovery a boost.

But Mr. Bernanke will face even more scrutiny in the months to come. On Thursday, House Republican leaders announced that Representative Ron Paul of Texas, the outspoken Republican libertarian who ran for president in 2008, will become the chairman of the subcommittee that oversees the Fed. His position on the central bank is captured in the title of his 2009 book, “End the Fed” (Grand Central Publishing).

Here’s some of what he wrote:

The Beginning of the End

“The day the Fed came into being in 1913 may have been the beginning of the end, but the powers it obtained and the mischief it caused took a long time to become a serious issue and a concern for average Americans.”

The Gold Standard

“Whenever I talk of a gold standard, there are always people ready to accuse me of having some obsession or fixation. Fetish is a word thrown around. In fact, I’m only observing reality: the idea of sound money in most of human history has been bound up with gold money.”

A Full-Time Counterfeiting Operation

On Mr. Bernanke: “There is something fishy about the head of the world’s most powerful government bureaucracy, one that is involved in a full-time counterfeiting operation to sustain monopolistic financial cartels, and the world’s most powerful central planner, who sets the price of money worldwide, proclaiming the glories of capitalism.”

New Money Out of Thin Air

“Only the Federal Reserve can inflate the currency, creating new money and credit out of thin air, in secrecy, without oversight or supervision. Inflation facilitates deficits, needless wars and excessive welfare spending.”

Fed Chairmen He Has Known

“Being in Congress in the late 1970s and early 1908s and serving on the House Banking Committee, I met and got to question several Federal Reserve chairmen: Arthur Burns, G. William Miller and Paul Volcker. Of the three, I had the most interaction with Volcker. He was more personable and smarter than the others, including the more recent board chairmen Alan Greenspan and Ben Bernanke.”

Low Interest Rates

“Artificially low interest rates are achieved by inflating the money supply, and they penalize the thrifty and cheat those who save. They promote consumption and borrowing over savings and investing. Manipulating interest rates is an immoral act. It’s economically destructive.”

The Bailouts

“Today, there is no principled opposition to the corporate bailouts and the Fed’s trillions of dollars of new credit and the takeover of insurance, mortgages, medical care, banks and the auto industry. The arguments have only been over amounts, financial vehicles, and which political group gets to wield the economic power. If there is no moral argument against the economic takeover of America, there will be no resistance to the dictator who rules over our lives with an iron fist.”

The Obama Legacy

“For the same reason a disease cannot be cured by more of the germ that caused it, the inflation and debt accumulation of the Obama years will not inflate our way out of it. This depression will likely last and last.”

[Joe King]

Low Interest Rates

“Artificially low interest rates are achieved by inflating the money supply, and they penalize the thrifty and cheat those who save. They promote consumption and borrowing over savings and investing. Manipulating interest rates is an immoral act. It’s economically destructive.”
Too bad the poor ignorant people just can't resist those low rates.
It's like they they have neither the principle nor ability to live within their means, so the good bankers provide this wonderful service and the people suck it up like there's no tomorrow without ever realizing what their own role in the game actually is.
....and then complaining about it afterwards if it didn't work out for them.


It takes two to Tango.
i.e. if you quit, they can't.

[Bigjon]

http://i.imgur.com/i7tPy.jpg



A Swedish friend sent me this picture and said it was a Norwegian Icebreaker.